In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Twin Peaks franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Twin Peaks franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of Twin Peaks’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average restaurant sales, cost of goods sold, rent, labor costs, and revenue mix (i.e. food vs. bar sales) for the 45 Twin Peaks restaurants, owned and operated by either franchisees or the franchisor’s affiliates, that were open for one full year or more
- 2013 average restaurant sales, cost of goods sold, rent, labor costs, and revenue mix (i.e. food vs. bar sales) for the 28 Twin Peaks restaurants, owned and operated by either franchisees or the franchisor’s affiliates, that were open for one full year or more
- % variance (2013 vs. 2014) in average restaurant sales, cost of goods sold, rent, labor costs, and revenue mix (i.e. food vs. bar sales) for the Twin Peaks restaurants, owned and operated by either franchisees or the franchisor’s affiliates, that were open for one full year or more
Section I – Background Information
If you’re the kind of person who likes restaurants like Hooters, then you’ll love Twin Peaks. Styled as a mountain lodge getaway, this chain offers the winning combination of “Eats. Drinks. Scenic Views,” which translates into hearty made-from-scratch comfort food, ice-cold draft beer, high-definition flat-screen televisions for watching sports, and scantily clad Twin Peaks girls to distract you from all that.
It was started in 2005 in the Dallas suburb of Lewisville by Randy DeWitt and Scott Gordon. DeWitt, who currently serves as CEO, is noted for being the founder and CEO of Rockfish Seafood Grill, a 14-unit chain of casual seafood restaurants he sold in July 2008.
When the chain began franchising in 2007, there were only three locations, but that figure has risen steadily ever since, and now stands at 71 spread throughout 24 states and one in Russia. Here’s how Twin Peaks keeps things on the rise in the competitive “scenic view” restaurant segment:
The Main Attraction
What is the main attraction? The food? The beer? The sports? The girls? All of the above is probably the correct answer. But it’s not competing with the average bar and grill or sports bar. It’s in a narrow niche in which it distinguishes itself with “better food, colder beer and hotter girls. That’s the winning combination.
The menu is prepared in-house and to order, delivered in generous portions. The beer is poured into huge frosted mugs at 29 degrees so that ice crystals form at the top of the glass. As the company website notes, “…up at the Peaks, every seat has a knockout view.” And that could mean all of the sports you want to see or the serving girls.
This chain’s mission, simply stated: “Every guy deserves to feed his hunger with hearty man food, beautiful girls, favorite sports and ice-cold draft beer in a mountain adventure lodge setting.”
The chain made the 2014 Nation’s Restaurant News “Second 100” list, an annual report that ranks restaurant brands between 101-200 based on U.S. system-wide sales. It was also included in FSR Magazine’s “Ones to Watch.”
Twin Peaks was named “America’s Fastest Growing Restaurant Chain” by Bloomberg Businessweek. FSR’s list of 10 Fast-Growing, High-Performing Chains ranked Twin Peaks in the #1 slot in 2014 and the #5 slot in 2015.
Some call them Lumber-Jills as their standard revealing uniforms are black-and-red plaid bikini tops revealing plenty of cleavage, khaki short shorts, and fur-lined boots. At other times, they wear revealing seasonal or themed outfits as called for.
When locations are looking to hire Lumber-Jills, job perks can include prepaid tanning and fitness packages. “Prospective applicants should arrive dressed to impress as positions are in high demand. No previous restaurant experience is required.”
A Solid Market
The so-called “breastaurant” segment may sound crass, but it’s booming. Chains in this niche are experiencing growth of 30-40% (although this is not true for Hooters). Restaurants in general are lucky to see 3-5% growth in recent years.
Section II – Estimated Costs
- Please click here for detailed estimates of Twin Peaks franchise costs, based on Item 7 of the company’s 2015 FDD (updated).